The AWSA allocates to New Mexico an annual average of 14,000 acre-feet of additional water from the Gila Basin and up to $128 million in non-reimbursable federal funding. The funds can be used only in the southwestern New Mexico region (Grant, Luna, Hidalgo and Catron counties). The water must be consumed in New Mexico and cannot be leased or marketed outside of New Mexico.

Planning for use of the water and funding has been under way since 2001. The NMAWSA requires that the New Mexico Interstate Stream Commission approve all uses of the water and funding.

In May 2011, the Interstate Stream Commission began evaluations of proposals submitted by stakeholders for uses of the water and funding. The two-tiered evaluation process was completed in February 2012. At its February 29, 2012 meeting, the ISC selected sixteen (16) projects to further assess for economic, legal, technical, ecologic, and hydrologic feasibility.

From 2012 through 2014, the ISC will complete a comprehensive assessment of the sixteen projects. The ISC will continue to seek public input throughout this process. Pursuant to the 2004 Act, New Mexico will notify the Secretary of the Interior of the final selection of projects by December 31, 2014.